In today’s post, I want to share my MLM Customer Retention Strategy. This post is an audio transcription of a training I did several weeks ago for my Regenalife team. While the training is specific to my company, the information can apply to any distributor in any company, in our industry. Enjoy.
Hello and welcome to our video. This is the Regenalife Rock Stars Customer Retention Strategy. As a real quick disclaimer, I’m an independent affiliate with the company. Individual results will vary. The products are not designed to treat, cure or prevent any disease.
What is retention? Retention is nothing more than having your customers and your affiliates continue to shop with Regenalife every single month, rather than simply ordering one or two times and then stopping.
Why do you want to focus on retention? Recruiting and retailing will make you some money in our business, but repeat orders are what brings in the big bucks and the long-term income.
First and foremost, each customer and each affiliate on your team is vitally important for your long-term success. This business is about building a network. It’s about building and maintaining strong relationships. Every person on your team is very important. You should treat them accordingly.
Next, the number one reason people stop ordering from the company is because they don’t feel appreciated. This really has nothing to do with Regenalife. There was a survey I read online not that long ago that said the number one reason people stopped shopping with a business is because of not feeling appreciated by the business.
You also need to realize that signing up a new customer or affiliate is just the starting point of your relationship, not the end goal. What a lot of people do is they sign someone up, which is great, but then they just go look for their next person to sign up.
What they should be doing is spending a little bit of time to start nurturing that relationship, training the person, and educating the person. I believe someone isn’t really a customer or an affiliate until they’ve ordered three months in a row.
Someone who orders once or twice, they’re really just a suspect. Once they’ve ordered three months in a row, there’s a good chance they’re going to keep ordering and they’re going be a long-term customer or affiliate in your business.
You also need to realize that no matter what you do, you’re never going to retain everyone. There are lots of different stats in our industry about the turnover rate. The attrition rate I’ve experienced over the past 16-years is about 75% per year. That means if you have 100 people on your team, nearly 75 of them will quit within 12-months.
I believe that reducing your attrition rates by 10 or 20 percent per year can have a huge impact on the bottom line in your business. Once again, you’re not going to keep everybody, but if you can reduce your attrition even a little bit, your business will really continue to grow and take off.
MLM Customer Retention Strategy
What you will see below is our five-step MLM Customer Retention System. This is a combination of my own ideas, some things I learned from Dale Calvert, and some things I’ve learned from other people in the industry. I’ve just modified it for our own business.
These are five things you need to do with your customers and your affiliates so you have higher retention rates in your team.
First of all, after someone signs up and places their first order, you want to send a handwritten thank you note in the mail thanking them for their business. It doesn’t have to be fancy. You can purchase inexpensive thank you cards at the Dollar Store. I believe you can buy a pack of 10 for $1. You can also have your own custom stationery made up. That is what I did. This personal touch makes a big difference.
Next, ask each customer and affiliate you introduced to the company, if you can stay in touch with them once a week. Most people will say YES. If they give you permission to email them, and only if they give you permission, create an email list and send out an informative email newsletter to all of your customers and affiliates once every week.
What will you include in the email? I would do the following things:
- Educate them about one product
- Inspirational Quote
- Today in History
- Talk about any Specials, Contests or Incentives
Keep the email short and sweet. You can create a master template and then just update your email once per week. You could literally do this in just 10 to 15 minutes.
Next, thirty days after someone places their first order, get on the phone with them, find out how they liked their products and ask them what products they want to select with their next order. This would be a good time to educate them about two or three of your favorite products, make some product recommendations, and if necessary, help them place their next order.
After someone has ordered for a second time or second month in a row; ask them if they want to sign up for auto-ship to save additional money on their purchases. As a customer, if you sign up for auto-ship, you become a preferred customer. This gives you additional discounts on your products; and in some cases you even get free shipping as an affiliate with Regenalife.
Finally, call every customer and affiliate that you personally brought into the business once a month, not to bring up the products or business. Just ask them how they’re doing. I call this a care call. It goes a long way to building customer loyalty.
Here’s a few additional things you can do to improve retention:
- Send out a mailed newsletter once per month
- Create a Facebook group for your customers
- Send out holiday cards and birthday cards
- Create a loyalty program for your customers
- Create a referral program for your customers
Remember, if no one orders the products, no one makes money. It really is that simple. You should put more focus on retention than you do recruiting. If you just focus on recruiting, you’re going to have a revolving door in your business. Trust me, you don’t want that.
Never stop doing the little things. Add the personal touch whenever possible. Go out of your way to make your customers and affiliates appreciated. And remember this, recruiting will make you money, but the big money is from repeat orders and retention.
Thanks for checking out my MLM Customer Retention Strategy…